The foreign exchange market, or Forex market, is an around-the-clock cash market where the currencies of nations are bought and sold, typically via brokers. Forex trading is always done in currency pairs. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. The value of your Forex investment [...]
Forex quotes are always listed in pairs, these quotes reflect the exchange rates of the currencies. These pairs look like this: GBP/USD = 1.9714. The currency listed first is known as the base currency (being the base of the trade), the second is called the counter, or quote currency.
All well and good, but what [...]
When you start trading in foreign exchange or Forex, you need to choose a broker or brokerage firm that is registered with the proper regulatory bodies. If you don’t, you could find yourself in dire straits.
If you are in the United Kingdom, look for Forex brokers who have registered with the Financial Services Authority, [...]
When you forecast Forex prices for the future, you use moving averages as a charting tools that will help in your predictions. There are several different kinds of moving averages.
Simple Moving Averages
You calculate a simple moving average (also known as SMA) by dividing the total of the past chosen period closing prices by the [...]
If you’re new to the world of trading Forex, the quotes can be confusing to you. However, they’re actually pretty simple to read once you know how to approach them.
Let’s take a look at an example of what a Forex rate quote looks like:
EUR/USD = 1.2526
Can you tell what this means? This shows the [...]
Forex traders have plenty of volatility to work with this year as the Fed continues to try to postpone the inevitable. By acting so aggressively to prevent a recession and Wall Street stock market sell off rather than to defend the US currency the Fed has placed itself in an uncomfortable position. Whatever action it [...]
Your choice of online forex brokers is no longer limited to firms that allow you to start trading with a $1000 or even $250 account. Forex dealing firms, known as forex brokers, that will let you open a trading account with such small sums of money may not be a good choice. Why is this? [...]
